Offshore Trusts Report: British Virgin
Islands

Substantive private trust company legislation came into force
in January 2007 and the enactment of subsidiary regulations specifying
which companies will be exempt followed soon afterwards.

Under the legislation, certain private trust companies may be
exempted from licensing requirements and other provisions of the
Banks and Trust Companies Act, under procedures implemented by
the Financial Services Commission. Unremunerated BVI private trust
companies which do not offer their services to the general public
will be able to apply for these exemptions, according to the Commission.

"These regulatory changes will enhance the BVI’s attractiveness
as a jurisdiction for the incorporation and use of private
trust companies," Christopher McKenzie, Partner and head of
Walkers’ private client department in the BVI, stated, adding:
"These developments are extremely positive news for estate
planners and will promote more structures that use both a
trust governed by BVI law and a BVI private trust company
as trustee by striking the right balance between the level
of regulation versus the level of exemption.”

Private trust companies enable family-controlled structures
to be established, offer trustees the benefits of limited
liability and perpetual existence which are usually the features
of corporate vehicles, and can lessen the tax burden by moving
the liability from the settlor to the trust company.

The BVI's new trusts legislation has opened
up wider markets for the BVI trust, in which clients are not
necessarily interested so much just in tax avoidance, but
also in the efficient management of wealth in a more general
sense.

British Virgin Islands News

BVI To Review Taxes And FeesMonday 15/3/2010British Virgin Islands Prime Minister, Ralph O’Neal has said that the territory
will run a budget surplus during 2010, although the government still intends to review indirect taxes and fees on financial services.

Caribbean Explores Fiscal CooperationTuesday 9/3/2010Ahead of the World Bank meeting, to be held on March 11-12, where CARICOM Finance
Ministers will meet to discuss challenges that the region faces, CARICOM Secretary
General, Edwin Carrington said it was vital for Caribbean economies to increase economic cooperation and remove fiscal barriers, for the prosperity of the region going forward.

OECD Reports On Its Progress With International Tax StandardsWednesday 20/1/2010According to the Organization for Economic Cooperation and Development, the focus of the Global Forum on Transparency and Exchange of Information is now shifting – from commitments and agreements to achieving an effective implementation of the standards.

UK's Wealthy Head For Sunnier Climes As Tax Storm BrewsWednesday 16/12/2009New research would appear to confirm that, while not quite the 'exodus' popularly characterized in the press, there is nevertheless a steady stream of wealthy financiers, entrepreneurs and bankers leaving Britain as a result of the Labour government's recent tax increases.

BVI Signs TIEAs With China And IrelandWednesday 9/12/2009The government of the British Virgin Islands took a further step on December 7
to conclude Organization for Economic Cooperation and Development model Tax Information Exchange Agreements, signing texts with Ireland and China.

Crown Dependencies Welcome Foot Report FindingsMonday 2/11/2009The British Crown Dependencies have welcomed the findings of the UK government's review
of the dependencies, published on October 29, which recognizes their economic benefit to the United Kingdom, and efforts to achieve compliance with international
standards.

BVI Makes OECD White ListMonday 17/8/2009The British Virgin Islands has signed its 12th Tax Information Exchange Agreement after concluding an agreement with New Zealand, meaning that the jurisdiction is now considered to be "substantially" in compliance with the Organization of Economic Cooperation and Development's tax snoopers' standard.

BVI Signs OECD Model Agreements With Nordic StatesWednesday 20/5/2009The British Virgin Islands government announced this week the signing of bilateral
tax information exchange agreements with the six Nordic countries, the Faroe Islands,
Finland, Greenland, Iceland, Norway and Sweden at the Icelandic Embassy in Copenhagen,
Denmark, on May 18.

The Offshore Trusts Guide Newsletter

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Wolters Kluwer (BSI) Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.